FCC votes to advance new spectrum auction to boost 'direct to device' services

The US Federal Communications Commission on ​Thursday voted to advance a new auction ‌of ​wireless spectrum to boost "direct-to-device" services and begin the work to modernize rules to support satellite telecommunications services. The FCC also voted to take an initial ‌vote on modernizing its rules for direct-to-device services and voted to finalize rules to allow drone operations within the 800 MHz cellular band.

Direct-to-device satellite technology allows smartphones and other devices to connect directly to satellites and ‌is being developed by SpaceX, Amazon's Leo and others. SpaceX's ambition to build a fully fledged mobile service rattled ‌investors in the US wireless sector after the company in August outlined plans that could eventually pit Starlink against Verizon, AT&T and T-Mobile.

"We are seeking comment on a comprehensive overhaul of our regulations to make it easier for wireless providers to strike ⁠win-win deals ​for D2D (direct-to-device) services on their ⁠spectrum," FCC Chair Brendan Carr said. "We are working to establish performance requirements that make sense for D2D offerings." He noted big recent ⁠deals to make the service usable.

SpaceX acquired EchoStar’s spectrum for $19 billion. Amazon’s Leo is acquiring Globalstar spectrum for $11.5 billion ​and won FCC approval this week. Private-equity firm Grain Management plans to sell its spectrum to ⁠SpaceX for $8 billion and Rocket Lab has filed with the FCC to acquire Iridium for $8 billion. Democratic FCC Commissioner Anna Gomez ⁠said direct-to-device ​can provide supplemental coverage, particularly in remote areas. "I want to ensure that our updates to this framework do not inadvertently allow one or two providers to dominate the market to the detriment of ⁠competition and consumer benefit," she said Thursday.

Tech companies are pouring billions of dollars into capturing the lucrative market ⁠for satellite-based connectivity as they ⁠race to compete with Starlink's network of more than 11,000 satellites. Starlink Mobile satellite-to-cellular service has existing global 2 GHz mid-band spectrum for high-bandwidth capacity. The new ‌spectrum will enable ‌its signal to pass through obstacles.